The Financial Conglomerates and Other Financial Groups Regulations 2004

Supervision of third-country banking groups U.K.

9.—(1) Where the Authority is, for the purposes of [F1 Article 143] of the banking consolidation directive (third-country parent undertakings), verifying whether a credit institution in a third-country group is subject to supervision by a third-country competent authority which is equivalent to that governed by the principles laid down in [F1 Articles 71, 72 and 73(1) and (3)] of that directive (supervision on a consolidated basis of credit institutions), it must, where there is a directive requirement to do so, before completing this verification—

(a) consult any competent authority which supervises a credit institution in that third-country group;

(b) consult [F2 the European Banking Committee] for the purposes of obtaining any applicable guidance prepared by that Committee in accordance with [F2 the first sub-paragraph of Article 143(2)] of that directive; and

(c) take into account any such guidance.

(2) Paragraphs (3) and (4) apply if the Authority exercises, for the purposes of [F3 Article 143(3)] of the banking consolidation directive, its powers to—

(a) vary the Part IV permission of a credit institution in a third-country group;

(b) disapply from, or apply in modified form to, such a credit institution, the rules specified in subsection (1) of section 148 of the Act in accordance with that section;

(c) impose conditions under section 185 of the Act on a person who is, or proposes to be, a controller of such a credit institution; or

(d) give a notice under section 186 or 187 of the Act to a person who is, or proposes to be, a controller of such a credit institution.

(3) Where there is a directive requirement to do so, the Authority must before exercising its powers to take the action specified in paragraph (2)—

(a) where the Authority would be responsible for supervising that third-country group for the purposes of [F4 Articles 125 or 126] of the banking consolidation directive (competent authorities responsible for exercising supervision on a consolidated basis) if alternative techniques were not applied, consult the competent authorities which are involved in the supervision of any of the credit institutions in that third-country group; and

(b) where the Authority would not be so responsible, obtain the consent of the competent authority which would be responsible for supervising that third-country group for the purposes of [F4 Articles 125 or 126] of the banking consolidation directive if alternative techniques were not applied.

(4) If the Authority decides to take that action, it must, where there is a directive requirement to do so, notify—

(a) any competent authority which supervises a credit institution in that third-country group; and

(b) the Commission,

that it has done so.

(5) Where the Authority has, for the purposes of Article 30 of the conglomerates directive (asset management companies), included an asset management company in the scope of supervision of a credit institution in a third-country group, each reference in this regulation to a “credit institution” is to be treated as including a reference to that asset management company.

Textual Amendments

F1 Words in reg. 9(1) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(3)(a)

F2 Words in reg. 9(1)(b) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(3)(b)

F3 Words in reg. 9(2) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(3)(c)

F4 Words in reg. 9(3)(a)(b) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(3)(d)